Mmbai: The level of optimism about business environment among India chief financial officers (CFO) increased in the first quarter of the new year, hitting a three-month high, according to a survey by an analytics firm.

"The composite CFO optimism index for Q1 of 2014 increased by 6.3 per cent on a quarter-on-quarter basis and declined by 16.2 per cent on a year-on-year basis," Dun& Bradstreet said in a report released here.

It said that the index continues to show a decline when compared on annually basis, but stressed that on a quarter-on-quarter basis it showed improvement, adding that the trend of decline has been arrested.

Though it did not speak about the number of CFOs surveyed, D&B said the group is a "microcosmic representation" of the country's business community.

Among surveyed CFOs, optimism of those from the services sector remains subdued as against those in the industrial sector, it said.

Half of the CFOs surveyed said that the environment would remain unchanged on the mergers and acquisitions front, it said.

Also, 55 per cent said there would be no change in their risk appetite, while 28 per cent said there would be an increase, Dun & Bradstreet said.

On fund raising plans, 49 per cent of CFOs said that costs of raising money would remain unchanged, while 11 per cent felt there would be a drop in the first quarter of 2014.

Additionally, 31 per cent of the CFOs felt that they have a need to raise long term funds, which is the lowest since the fourth quarter of 2012.

It said that there has been a drop in the percentage of CFOs indicating preference for business restructuring and risk management for the next six months.